Gold prices in India today fell slightly today but held above ₹49,000 levels. On MCX, August gold futures fell 0.1% to ₹49,211 per 10 gram after rising 0.21% in the previous session. But silver rates edged higher. Silver futures on MCX rose 0.42% to ₹52,870 per kg, after falling 0.75% in the previous session. Gold rates in India had hit a record high of ₹49,348 last week and since then has hovered around ₹49,000 levels.
In global markets, gold prices edged higher today as worries over surging coronavirus cases and renewed US-China tensions propped up demand for the safe-haven metal. Gold held above the key psychological $1,800 level, rising 0.1% to $1,808.61 per ounce.
Reflecting increased investor interest in gold, holdings of SPDR Gold Trust, the world’s biggest gold-backed ETF, rose 0.2% to 1,206.89 tonnes on Tuesday- its highest in over seven years.
“Gold may also benefit from renewed buying by ETF investors. Gold may witness choppy trade as market players assess virus and geopolitical risks however the general bias may be on the upside amid increasing challenges to global economy,” Kotak Securities said in a note.
Gold is considered a safe-haven asset during times of economical and political uncertainties. The resultant safe-haven demand helped gold maintain its positive trajectory despite a rally in global stocks.
Among other precious metals, platinum gained 0.2% to $827.82 and silver edged 0.1% higher to $19.22.